How Does the State Interfere in Employment Relations - Essay Example

Name Class Unit Topic: How does the state interfere in employment relations? Can a neo-liberal government ever be absent from the management of employment relations? Introduction In most countries, the state has a great influence in the labour relations. State encompasses more than a single actors, government institutions and departments. The state has been influencing employment relations in different ways. There have been passing of judgements which have led to great changes in the employment relations. The government have powers on bodies and institutions that govern employment relations (Hyman, 2008). The state interventions have been increasing over the years. The state main aim in intervening on the employment relations is gaining economic and social development for the whole nation. The state have a role to make sure that there is high level of employment, stability in prices and ensure that the exchange rate is protected (Sycholt & Klerck, 1997). Labour legislation is used to influence the employers’ decision making. It also ensures that there is tangible protection for the employees from the discretionary powers held by the employer (Sisson, 2007). This paper will give ways in which the state interferes with the employment relations. The paper will also explain how a neo liberal government can ever be absent from the management of the employment relations. The state have various methods of intervention which includes; being an employer, regulating incomes and prices, economic manager, protecting the standards, making rules and promoting the citizenship guidelines. A state acts as an employer in their own right. This involves being a responsible employer, which sends signal to the way employees ought to be treated at work. This makes the employees in the public sector and the labour unions to take a reciprocal that will ensure conflict in employment relations are avoided. The government ensures that they encourage employees to be members of the trade unions under the public sector. This has made the trade union membership to be healthy among the public sector employees in most countries (Hyman, 2008). By being an income regulator, the government is able to intervene in employment relations. The governments in most countries control prices and wage increases. This ensures that there is low inflation rate. The government can also manipulate the interests’ rates and regulate public spending which results in an influence in employment relations. The government is the economic manager of a country. The state is thus involved in macro-economic policies which include money supply and fiscal regulations. These are issues that can have an effect on the labour market and the manner in which man power is utilised. The state can provide return to work incentives and operate employment exchanges. This is a major step towards labour mobility through means such as providing training which caters for skills shortages. Through being an economic manager, the government is able to provide labour decommodificaton. This is through funding the welfare protection which ensures employees do not become over-dependent on employers (Hyman, 2008). This helps a lot especially during recession and unemployment. The state is a protector for the standards for employment. Through this, the state is able to set the minimum standards for the employment. The minimum standards for employment have been in existence for a long time in most countries. This is to ensure that there is no discrimination in workplaces, no unfair dismissal and upholding equal pay. The state is also the rule maker and the legislator. The government promulgates legislation directly. The main functions of the law based on this respect are three. First, good employment relations are encouraged through giving actions that will be undertaken against those who breaks the legislation. Governments around the world have a code of practice that have to be followed for good employment practices. The state is also responsible for setting the restrictive laws such as those against child labour and discrimination in labour practices (Heyes & Nolan, 2010). The state also sets the minimum wages which must be adhered to by the employers. Government policy objectives are used in shaping the social citizenship. Social citizenship is used in shaping the extension of democracy in the workplace domain. This leads to the expectation by the employees to be respected and treated well by the employers. Social citizenship encourages consultations in the workplace and ensures fair treatment at workplace. There have been changes which have advocated for stakeholders agenda and denied the exclusivity of rights to the shareholders. This has helped a lot in civilising the capitalism in the free market. The state through political citizenship ensures that there is influence on the workplace relations (Ewing, 1998). This is through coming up with policies and objectives which ensure work life balances and employee family is catered for. In some states, the government ensures labour market flexibility and also supports social justice and ensures citizenship at the workplace. Social justice, competitiveness and flexibility are balanced through set regulations. The state thus promotes fair work and ensures that social policies are able to remain neo liberal. Theories on state and labour relations explain the labour relations and works to justify given interests of production (Sycholt & Klerck, 1997). The theories include Unitarianism which is a management ideology. Pluralism ensures that there is balance of power among the competing interests. Through pluralism, the role of state as a mediator is upheld. Through capitalism, labour is seen as a source of value. In a capitalist society, the state cannot play a neutral role. The state is forced to promote the interests of the employers and owning classes (Ewing, 1998). Labour laws in some countries ensure that the trade unions do not go against the individual contract. This is due to fact that most of the laws do not take account of the fact that employment relations are in most cases collective. This may make labour unions liable for industrial action that is unofficial. Despite this, the state may give the trade unions immunity from persecution. The state also ensures that the actions of the trade unions do not have an effect on the society well-being (Hyman, 2008). For example, the government introduces the strike order measures. The state may empower the police to tackle public disorders during the strikes. The state ensures that the corporations have some responsibilities to the public. This includes ensuring that the members of public are not at any risk from the organisations. The state also demands that workplaces should be free from discriminatory relations (Sisson, 2007). There are laws enforced by the state which ensures employment relations are catered for. There are both criminal and civil laws which guides the employment relations. Criminal law caters for issues such as employee theft and neglect by the employer. Civil laws cater for the rights of the employees and ensure that there is fair conduct. Employees and organisations are taken as individuals in law. All laws dealing with employment relations are designed to regulate a given relation. The state regulates the relationship between the trade unions and the society (Sisson, 2007). The government comes up with strategies on industrial relations which gives a framework on employment, collective bargaining and minimum working conditions. This ensures that there is stability and productivity in the state economy. Collective bargaining is a legitimate and necessary means in which disputes in labour can be resolved to ensure economic rewards are distributed equitably. The state plays a facilitative role in ensuring that economic rewards are well distributed (Heyes & Nolan, 2010). The state through their influence on labour relations ensures that fair collective bargaining. Through nationalism, the state is the trustee of the citizens’ interests. The government have the legitimacy to ensure that there is efficient production. The state is supposed to create a favourable climate for the labour with little intervention. This is through a well-established labour act and regulations for labour relations (Sycholt & Klerck, 1997). The neo liberal assumptions claim that with the right environment and a free market system, all things follows (Campbell & Pedersen, 2001). The state through a democratic approach plays a role of ensuring they maintain a tripartite system regulation. The system includes state, labour and business. Neoliberal reforms took place under the pressure of the global markets (Hyman, 2008). There was need for flexible labour unions which required strong labour unions, reduction of taxes and state with minimalist welfare. For a neoliberal government, the involvement in labour relations is hard to eliminate. The restructuring process in a neoliberal government has great implications for labour movements as well as the unions. Market liberalisation involves the government role. The interventions by neoliberal governments such as seen in Mexico used a strategy of divide and rule. This intervention in the employment relations worked against the powerful labour unions (Cook, 2007). A neoliberal regime may use state intervention to weaken the labour unions through fragmentation. During neoliberal reforms, the state uses different strategies to deal with labour unions. The process of unionisation in a country is affected by the state labour relations. The state can create or eliminate labour unions in a country during the neoliberal era. The state plays a role of ensuring that they appease the citizens’ resistance to the neoliberal reforms (Campbell & Pedersen, 2001). Through the ability of state to make laws, state has a great influence on the employment relations. The legal intervention by state has been changing based on the type of government in power. This is due to the changes in the political and philosophical ideologies of those in the power (Sycholt & Klerck, 1997). The state main interventions are based on ensuring that there is fairness and justice in the employment sector. The state ensures that employees have rights which are defended. The state also legitimises the employee relations. The state has been a key player in most countries to ensure that legal aspects of negotiation, collective bargaining and conflict resolution are addressed (Hyman, 2008). Conclusion The role of state in employment relations is major. The state uses various means to intervene in the employment relations. Theories such as unitarism, capitalism and pluralism explain the different role of state in labour interventions. The state intervenes in the labour relations through the following ways; being an employer, regulating incomes and prices, economic manager, protecting the standards, making rules and promoting the citizenship guidelines. The state has a responsibility to protect its citizens from oppressive labour relations. This is due to fact that the state is the trustee of the citizens’ rights. The state also ensures that there are healthy labour unions and employee’s rights are upheld. The ability of state to make laws and ensure their implementation ensures that they have a great influence on labour relations. For a neoliberal government, it is hard to stay away from the management of the employment relations. The restructuring process of a neoliberal government involves a lot of influence on the labour relations. References Campbell, J.L. & Pedersen, O.K. 2001, The Rise of Neo-liberalism and Institutional Analysis, Princeton, NJ, Princeton University Press. Cook, M. L. 2007, The Politics of Labor Reform in Latin America: Between Flexibility and Rights, University Park, Pennsylvania State University Press. Ewing, K.D. 1998, “The State and Industrial Relations: Collective Laissez-faire Revisited”, Historical Studies in Industrial Relations, Vol.5, no.2, p.1-31. Heyes, J. & Nolan, P. 2010, “State, Capital, and Labour Relations in Crisis”. In Colling, T. & Terry, M. Industrial Relations: Theory and Practice. Chichester: John Willey, p. 106-124. Hyman, R. 2008, “The State in Industrial Relations”. In Blyton, P. et al. The SAGE Handbook of Industrial Relations. London: Sage, p. 258-283. Sycholt, M., & Klerck, G. 1997, The state and labour relations: Walking the tightrope between corporatism and neo-liberalism. Continuity and change: Labour relations in independent Namibia. Windhoek: Gamsberg Macmillan. Sisson, K. 2007, ‘Revitalising industrial relations: making the most of the “institutional turn”’, Warwick Papers in Industrial Relations, No. 85, University of Warwick, Coventry. Read More